Are These Stocks Showing Potential? Incontact Inc (SAAS) and Targacept Inc (TRGT)
New York, NY – GDP INSIDER – 03/25/2015.
This article discusses two companies: Incontact Inc (NASDAQ:SAAS) and Targacept Inc (NASDAQ:TRGT)
Incontact Inc (NASDAQ:SAAS) fell back yesterday with the stock reversing its recent gains to close down 7.56% or $0.86 at $10.52 on very active trading of 2.699 million shares, compared to its three month average trading volume of 0.450 million. The reseller of network connectivity services began to decline after it announced that it was offering $100 million of convertible 2022 senior notes which, if successful, should generate net proceeds of around $96.7 million. The funds are going to be used to repay outstanding term loans and reduce the balance on the secured revolving credit line. The stock has been making strong gains of late, with the stock reaching a 52 week high of $11.93 at the beginning of the month. With quarterly revenue growth of 40.90% year on year and RSI of 45.93, Incontact Inc has a lot of upside potential once the market corrects from today’s decline, making the stock a strong hold and potential buy.
Targacept Inc (NASDAQ:TRGT) continued to climb yesterday with the stock gaining an additional 3.25% or $0.09 to closer $2.86 with more than 1.172 million shares changing hands, compared to its three month average trading volume of 0.062 million shares. The biopharmaceutical company focused on developing new nervous system drug treatments had been trading within a narrow range of between $2.50 and $2.64 for most of the last three months and yesterday’s gain pushed it through its resistance level, which could lead to more gains. Targacept had been underperforming the S&P 500 so far this year, but has now gained 8.75% YTD, compared to the index which is only up 1.58% over the same period. With RSI of 72.63, quarterly revenue growth of 36.6% and diverging MACD, the stock may be moving to a higher trading range, rather than becoming overvalued making it a solid hold and potential buy at the moment.
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